Core Insights - The secondhand apparel market is experiencing significant growth, projected to reach $367 billion by 2029, growing almost three times faster than the overall apparel market [1] - ThredUp's logistics network is highly developed, processing approximately 40,000 pieces of used clothing daily and capable of holding over 3.5 million items [1] - The impact of tariffs on retail prices is shifting consumer demand towards resale platforms, making them a more attractive option [3][4] Company Performance - ThredUp reported a 34% year-over-year revenue growth in the third quarter, with new customer acquisition at an all-time high, increasing by 54% compared to the previous year [3] - The company operates with gross margins near 80% and is free-cash-flow positive, indicating strong financial health [3] Market Trends - The rise of secondhand fashion is being driven by Gen Z shoppers, with a growing number of Americans embracing this trend [2] - Tariffs are contributing to the appeal of resale platforms, as pre-owned items are not subject to the same duties, thus making them more cost-effective [4] Technological Advancements - ThredUp is leveraging automation and AI to enhance operational efficiency, with AI systems capable of processing thousands of garments per hour [4][5] - The use of AI is also improving customer experience through better discovery, styling, and personalization [5] Future Outlook - The future of fashion is anticipated to be more sustainable, with secondhand shopping playing a central role in this transformation [6]

Q3 2025 Financial Performance - Revenue for Q3 2025 reached $82 million, representing a 34% year-over-year growth[10] - Gross profit for Q3 2025 was $65 million, resulting in a 79% gross profit margin[10] - Adjusted EBITDA for Q3 2025 was $4 million, with an adjusted EBITDA margin of 5%[10] - The company's end-of-quarter cash position for Q3 2025 was $56 million, with $19 million in debt[10] Active Buyers and Orders - ThredUp had 16 million active buyers in Q3 2025 on a trailing twelve-month (TTM) basis, a 26% increase year-over-year[10] - Total orders for Q3 2025 were 16 million, reflecting a 37% year-over-year growth[10] Sustainability Impact - The company has saved 11 billion pounds of carbon emissions[9] - The company has saved 21 billion kWh of energy[9] - The company has saved 115 billion gallons of water[9] Market Opportunity - The U S secondhand apparel market is expected to grow at a 9% compound annual growth rate (CAGR) from 2024 to 2029[44] - Approximately 17 billion pounds of apparel are thrown away in the U S annually, which could be recycled or reused[47] Long-Term Targets - The company aims for a long-term adjusted EBITDA margin of 20-25%[80]